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Teachers sue to block the state from transferring health insurance coverage

By Star-Advertiser Staff

POSTED:
LAST UPDATED: 12:39 a.m. HST, Sep 15, 2010


 

Public school teachers are suing to prevent changes in their health insurance coverage.

The lawsuit filed today in Circuit Court against the state seeks to prevent the state from transferring health insurance coverage for 15,000 current and retired teachers from the union's Voluntary Employees Beneficiary Association trust to the state Employer-Union Benefits Trust Fund.

The teachers in the class action lawsuit say the employer's trust fund is "teetering and financially insolvent."

They say Voluntary Employees Beneficiary Association plan offered by the Hawaii State Teachers Association is solvent and less costly to operate.

The lawsuit also seeks the return of about $3.9 million that was allegedly wrongfully taken from the VEBA trust by the state.





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